Académique Documents
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Management
Chapter 5 –
Design of Goods
and Services
☑ Differentiation
☑ Shouldice Hospital
☑ Low cost
☑ Taco Bell
☑ Rapid response
☑ Toyota
Cash
flow
Loss
80 –
Percent of total cost
Costs incurred
60 –
40 –
Ease of change
20 –
40%
30%
20%
10%
40 – Magic Kingdom
Combined data only prior to 1993
Epcot
30 – Disney-MGM Studios
Animal Kingdom
20 –
10 –
0–
84 86 88 90 92 94 96 98 00 02 04
© 2008 Prentice Hall, Inc. 5 – 17
Product Development System
CONCEP
T Figure 5.3
Feasibility
Customer Requirements
Functional Specifications
Evaluatio
© 2008 Prentice Hall, Inc.
n 5 – 18
Quality Function Deployment
☑ Identify customer wants
☑ Identify how the good/service will satisfy customer
wants
☑ Relate customer wants to product hows
☑ Identify relationships between the firm’s hows
☑ Develop importance ratings
☑ Evaluate competing products
☑ Compare performance to desirable technical attributes
Competitive
assessment
What the Relationship
customer matrix
wants
How to Satisfy
Competitors
Analysis of
What the
Relationship
Customer
Matrix
Wants
Technical
What the Attributes and
Evaluation
customer wants
Customer
importance
rating
(5 = highest)
Lightweight 3
Easy to use 4
Reliable 5
Easy to hold steady 2
Color correction 1
How to Satisfy
Competitors
Analysis of
What the
Relationship
Customer
Matrix
Wants
Technical
Attributes and
Evaluation
Low electricity requirements
Aluminum components
How to Satisfy
Ergonomic design Customer
Wants
Auto exposure
Paint pallet
Auto focus
How to Satisfy
Competitors
Analysis of
What the
Relationship
Customer
Matrix
Wants
Lightweight 3
Easy to use 4
Reliable 5
Easy to hold steady 2
Color corrections 1
Relationship matrix
How to Satisfy
Competitors
Analysis of
What the
Relationship
Customer
Matrix
Wants
Technical
Attributes and
Evaluation
Relationships between
the things we can do
Aluminum components
Ergonomic design
Auto exposure
Paint pallet
Auto focus
How to Satisfy
Competitors
Analysis of
What the
Relationship
Customer
Matrix
Wants
Technical
Attributes and
Evaluation
Lightweight 3
Easy to use 4
Reliable 5
Easy to hold steady 2
Color corrections 1
Our importance ratings 22 9 27 27 32 25
Weighted rating
How to Satisfy
Customer Wants
Competitors
Analysis of
What the
Relationship
Customer
Matrix
Wants
Technical
Attributes and
Evaluation
Company A
Company B
How well do competing products
meet customer wants
Lightweight 3 G P
Easy to use 4 G P
Reliable 5 F G
Easy to hold steady 2 G P
Color corrections 1 P P
Our importance ratings 22 5
© 2008 Prentice Hall, Inc. 5 – 27
Interrelationships
How to Satisfy
Customer Wants
Competitors
Analysis of
What the
Relationship
Customer
Matrix
Wants
Technical
Attributes and
Evaluation
2 circuits
2’ to ∞
attributes)
0.5 A
75%
Company A 0.7 60% yes 1 ok
Technical
evaluation G
Company B 0.6 50% yes 2 ok F
© 2008 Prentice Hall, Inc.
Us 0.5 75% yes 2 ok G 5 – 28
House of Quality Example
Aluminum components
Ergonomic design
Auto exposure
Paint pallet
Company A
Company B
Auto focus
Completed Lightweight 3 G
House of Easy to use 4
Reliable 5 P
Quality Easy to hold steady 2 G
Color correction 1
Our importance ratings 22 9 27 27 32 25 P
F
Panel ranking
(Technical G
attributes)
2 circuits
2’ to ∞
0.5 A
75%
P
Company A 0.7 60% yes P
Technical 1 ok G
evaluation
Company B 0.6 50% yes P
© 2008 Prentice Hall, Inc. 2 ok F 5 – 29
House of Quality Sequence
Deploying resources through the organization in
response to customer requirements
Quality
plan
Production
process
Production
Specific
House 4
process
components
components
House 3
Specific
Design
characteristics
characteristics
House 2
Design
requirements
Customer
House 1
Figure 5.4
Figure 5.5
© 2008 Prentice Hall, Inc. 5 – 34
Issues for Product Development
☑ Robust design
☑ Modular design
☑ Computer-aided design (CAD)
☑ Computer-aided manufacturing (CAM)
☑ Virtual reality technology
☑ Value analysis
☑ Environmentally friendly design
1. Product quality
2. Shorter design time
3. Production cost reductions
4. Database availability
5. New range of capabilities
☑ Design
☑ Production
☑ Destruction